Sensex slips in dull trade...Nifty holds 5550

After two positive sessions, the Indian markets ended with modest losses on Friday, extending the losing streak to a second consecutive week. However, the NSE Nifty managed to close above the 100DMA for the third straight day, indicating that there is still some steam left in the market.

Metals, Auto, Realty and PSU stocks were among the major laggards. Among the major gainers were IT, Power and Telecom stocks. The Mid-Cap and the Small-Cap indices were under some pressure today.



Shares of TCS rose over 2% to end at Rs. 1148 after the IT major came out with stunning Q1 results and the management exuded confidence for the Company's business prospects going forward, notwithstanding headwinds confronting the key markets.

Globally, stocks in the US ended in the red after S&P placed US credit ratings on watch, a day after a similar action was taken by competitor Moody's. S&P says there is 50% chance of a US downgrade.

Asian stocks closed mixed while the European indices were jittery ahead of the outcome of the latest stress tests for the region's banks.

"The Indian market has largely emerged unscathed from the latest terrorist attack on Mumbai. But, the undertone is still jittery over a spate of local and global headwinds. For India, the biggest worry is inflation, which refuses to budge and is in fact likely to rise on the back of the fuel price hike. The RBI too is not done with its tightening. One has to adopt a wait-and-see approach as the earnings are still rolling out.

For the global economy, the major concern is the credit crisis in the eurozone and the impasse over debt ceiling in the US. The back-to-back warnings by Moody's and S&P and regular downgrades of peripheral euro area nations continues to cast a shadow over world markets. The stress test results of European banks will be watched closely," says Amar Ambani, Head of Research, IIFL - India Private Clients.

Finally, the BSE Sensex ended at 18,562 slipping 56 points. It had earlier touched a day's high of 19,619 and a day's low of 18,513. It opened at 18,694. The NSE Nifty closed at 5,581 losing 18 points.